California unemployment fund is broke!!!

This is very positive news for the markets, no need to worry as the printing press will take care of the 2 million peple out of work in California.

Dec 1, 2009 5:55 pm US/Pacific
On The Money: Unemployment Fund Is Broke
California Hemorrhaging Money At Record Pace
Reporting
Mike Luery SACRAMENTO (CBS13)
These are tough times for Glenn Borden, who just got laid off from his truck driving job.

"It's the toughest I've seen in years," Borden told CBS 13, while looking for work at California's Employment Development center in Sacramento.

Glenn Borden is one of two million Californians now out of work. Most are filing for benefits at a time when the state's unemployment fund is in deep trouble.

"We're broke and the hole is getting bigger," said Loree Levy of the Employment Development Department.

Levy explained that California's unemployment insurance fund is now $7.4 billion in the red. California is spending an average of $20 million more each day than it is taking in. And those numbers are likely to get worse, climbing to an estimated $18 billion deficit next year, while ballooning to $27 billion in the hole by 2011. California is in fact, so broke, the state has had to borrow money from the federal government to pay unemployed workers.

As Loree Levy noted, "We're going to owe the federal government a lot of money."

California's unemployment fund is supported entirely by employers, who pay up to $434 per employee. California workers, by contrast, pay nothing into the fund.

In prosperous years, the formula worked, but with one out of every eight Californians now unemployed â the highest on record since World War II, the entire system has collapsed, leaving only two options: either raising the revenue going in, or decreasing the benefits going out.

Employers say they can't afford to pay more into the fund, while unemployed workers say they can't afford to take less in benefits, on average about $312 a week. And they just want a job.

"I've been trying here for at least 3 months now," said Jenaro Jaureguy, who is unemployed. "My last interview wasn't so successful, so I thought I'd try again for the holiday season."

The job market is, "very competitive," said Patrick Graham, an unemployed worker. "Yeah, there's a lot of people out there looking for work."

But California's unemployment fund will continue sinking deeper into debt, until the Legislature comes us with a permanent solution. The state will have to pay the federal government $730 million in interest for the billions we've borrowed to keep the unemployment fund afloat. That loan comes due in 2011 and the state is already drowning in a sea of red ink.

GREEN SHOOTS!!!!! Look for an uptick in the paper manufacturing sector!!!

That is beautiful...a bankrupt state is borrowing from a bankrupt federal government. The federal government for its part is printing money (that it can't borrow or generate revenue for) and giving it to a state that provides too many services to its residents (legal and illegal)! NO I AM NOT saying unemployment insurance is bad...I am saying the things like extremely low college tuitions...no control of its borders, and all of the costs associated with illegal immigration are bad and that the REST OF THE COUNTRY SHOULD NOT BE SUBSIDIZING THEM!!!

I don't know what that guy is doing but I live in California and I was unemployed from June till October this year and I never had to make a phone call. You go online and put in a claim, 1 week later you get claim form in the mail, you check off a couple boxes, sign it, and mail it back. A week after that, your unemployment check comes attached to a new claim form and the process repeats itself.

1. either take that time and get a job
2. take the time it takes to get through. its not like your doing anything else. go down to the office, try online (ok, try again)

If those ideas are just too difficult then perhaps we have found the causation of the loss of job.....

Maybe Michael moore will want to do a video about how unemployed people are screwed over by the capitalist pig that raises the minimum wage so less jobs are available. oh wait, no i may have that wrong. yes, its the UNIONS that are out there to protect the american worker that promotes the raising of the labor component in the price of goods..... Its done wonders for getting jobs moved from overseas to America or perhaps I have that part backwards

Anyway, good luck Cali, you go the great weather , hot chicks, and lots of righ folks that you have not bleed to death yet. I am sure you will all figure something out. Maybe keep moving forward on the statewide cap and trade program that is working its way through Sacramento. Great use of legislative time right now I guess....